The forms P11D, and where appropriate P9D, which report details of expenses and benefits provided to employees and directors for the year ended 5 April 2014, are due for submission to HMRC by 6 July 2014. The process of gathering the necessary information can take some time, so it is important that this process is not left to the last minute.
Employees pay tax on benefits provided as shown on the P11D, either via a PAYE coding notice adjustment or through the self assessment system. In addition, the employer has to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form.
HMRC have updated their expenses and benefits toolkit for 2013/14 and record keeping for 2014/15. The toolkit consists of a checklist which may be used by advisers or employers to check they are completing the forms P11D correctly.
If you would like any help with the completion of the forms or the calculation of the associated Class 1A National Insurance liability please get in touch.
Internet links: http://www.hmrc.gov.uk/payerti/exb/forms.htm
HMRC would like employers to be aware that they have identified an issue with some employees who have student loans.
A few of the employees in this situation have had their employment status incorrectly ‘ceased’ on HMRC’s PAYE systems and this incorrect information has been passed to the Student Loans Company (SLC).
The SLC have written to these borrowers, querying their employment status. Employees affected by this issue are being asked to reply to the SLC saying they have not ceased or changed employer.
HMRC are hoping to correct their systems in the next few weeks. They have identified that there is an issue getting this corrected information on to the student loans system and are taking steps to resolve this issue.
Internet link: HMRC website
New research suggests that the number of workers on zero hour contracts, with no guarantee of hours or pay, are becoming more widespread.
Research by the Chartered Institute of Personnel and Development (CIPD) shows that there are up to a million workers on zero hour contracts. The survey also showed that only 14% of workers on these contracts were let down by their employers by them failing to provide sufficient hours each week.
However figures from the Office for National Statistics (ONS) show that only 250,000 people on zero hour contracts.
Zero hour contracts have become more widespread over recent years, particularly in the hospitality and retail sectors, where businesses view them as a cost effective way of satisfying short term staffing needs by using ‘on call’ staff.
Peter Cheese the CIPD’s CEO said:
‘Zero hours contracts, used appropriately, can provide flexibility for employers and employees and can play a positive role in creating more flexible working opportunities. This can for example allow parents of young children, carers, students and others to fit work around their home lives.’
‘However, for some this may be a significant disadvantage where they need more certainty in their working hours and earnings, and we need to ensure that proper support for employees and their rights are not being compromised through such arrangements. Zero hours contracts cannot be used simply to avoid an employer’s responsibilities to its employees.’
Internet link: Press release
The Office for National Statistics has announced the latest official labour market statistics. These are as follows:
- The employment rate for those aged from 16 to 64 for February to April 2013 was 71.5%, down 0.1% from November 2012 to January 2013. There were 29.76 million people in employment aged 16 and over, up 24,000 from November 2012 to January 2013.
- The unemployment rate for February to April 2013 was 7.8% of the economically active population, unchanged from November 2012 to January 2013. There were 2.51 million unemployed people, down 5,000 from November 2012 to January 2013.
- The inactivity rate for those aged from 16 to 64 for February to April 2013 was 22.4%, up 0.1% from November 2012 to January 2013. There were 8.99 million economically inactive people aged from 16 to 64, up 40,000 from November 2012 to January 2013.
- Between February to April 2012 and February to April 2013 total pay rose by 1.3% and regular pay rose by 0.9%.
Neil Carberry, CBI Director for Employment and Skills, said:
‘It’s encouraging to see businesses feel able to pay people a little more through one-off bonuses, as economic conditions appear to have brightened. The use of bonuses rather than base pay awards suggests firms are still being cautious.’
‘The labour market always lags a few months behind the economy, so it’s not surprising that overall, the picture on unemployment remains fairly flat.’
‘However, we expect to see improving economic conditions making a more positive impact on job creation later this year and it’s encouraging that once again the private sector more than offset the number of positions lost in the public sector during the first quarter.’
Internet links: ONS statistics Press release
The government has updated the template of written employment particulars.
The template is an example of a written statement of employment particulars which meets the requirements of employment law.
Where an employee is employed for more than a month the employer must give them a written statement of employment particulars.
Internet link: Government Publications